In a significant move following Circle's recent IPO, Cathie Wood’s ARK Invest has offloaded nearly $100 million worth of Circle (CRCL) shares over just two days. The investment firm, known for its bold bets on innovative technologies and cryptocurrencies, sold approximately 642,766 shares across its actively managed ETFs, including the ARK Innovation Fund, Next Generation Internet Fund, and Fintech Innovation Fund.
The latest transaction on June 17 saw ARK Invest sell 300,108 shares for about $44.7 million, following an earlier sale of 342,658 shares worth $51.8 million. This rapid reduction in holdings comes after ARK initially purchased a substantial $373 million stake in Circle shortly after its public debut on the NYSE, signaling a quick pivot to take profits amid a post-IPO rally and subsequent price fluctuations.
Circle, the issuer of the popular USDC stablecoin, has been a focal point for investors due to its role in the growing stablecoin market and blockchain-based financial solutions. However, the recent sell-off by ARK Invest has raised questions about the long-term confidence in Circle’s stock performance, especially as market dynamics shift.
Analysts suggest that ARK’s decision could be driven by a strategy of profit-taking after Circle’s shares surged by nearly 387% post-IPO. Alternatively, it might reflect a broader reallocation of funds to other high-growth opportunities within the crypto and fintech sectors, a hallmark of ARK’s investment approach.
Investors are now closely monitoring whether this move signals a potential red flag for Circle or simply a tactical adjustment by ARK Invest. The sales coincide with broader market developments, including the passing of the GENIUS Act in the Senate, which could impact blockchain and stablecoin regulations.
As the situation unfolds, the crypto community remains eager to see how Circle’s stock stabilizes and whether ARK Invest will continue to trim its holdings or reinvest at a later stage. This development underscores the volatile yet opportunity-rich nature of the cryptocurrency investment landscape.
Andrew Lee
